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Steam Long Range Plan 2010-2030

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Steam Long Range Plan 2010-2030 Steam Long Range Plan May, 2012 Table of Contents 1.0 EXECUTIVE SUMMARY ..................................................................................................................................... 7 2.0 INTRODUCTION .............................................................................................................................................. 11 2.1 VISION AND PLAN OBJECTIVES .................................................................................................................................. 11 2.2 KEY ELEMENTS OF THE PLAN ..................................................................................................................................... 16 2.3 CRITICAL POLICY AND REGULATORY APPROVAL STRATEGIES ............................................................................................ 23 2.4 CHALLENGES .......................................................................................................................................................... 25 2.5 UNCERTAINTIES AND SIGNPOSTS ................................................................................................................................ 26 2.6 BUSINESS OVERVIEW .............................................................................................................................................. 29 2.7 VALUE OF THE STEAM SYSTEM .................................................................................................................................. 31 2.8 BENCHMARKING ..................................................................................................................................................... 40 2.9 CUSTOMER BASE .................................................................................................................................................... 41 2.10 COMPONENTS OF THE STEAM BILL ........................................................................................................................... 45 2.11 ALTERNATIVES TO STEAM HEATING AND COOLING ...................................................................................................... 46 2.12 TECHNICAL OVERVIEW OF THE SYSTEM ...................................................................................................................... 46 2.12.1 Generation Overview ............................................................................................................................... 46 2 12.2 Steam Distribution System ....................................................................................................................... 48 2.13 EXTERNAL STAKEHOLDERS INPUT .............................................................................................................................. 50 2.14 KEY BUSINESS DRIVERS AND COMPARATIVE PERFORMANCE TRENDS .............................................................................. 50 3.0 MANAGING DEMAND, SUPPLY, AND ENVIRONMENTAL PROFILE ................................................................... 51 3.1 OVERVIEW ............................................................................................................................................................ 51 3.2 DEMAND AND SALES FORECASTS ............................................................................................................................... 51 3.3 STEAM RESOURCE PLAN: MANAGING PRODUCTION CAPACITY ........................................................................................ 56 3.3.1 Outlook for 2012 – 2031........................................................................................................................... 56 3.3.2 Capital Plan for Ongoing Production Resources ........................................................................................ 57 3.3.3 Gas Addition Projects ................................................................................................................................. 59 3.3.4 Gas Additions Projects Economic and Environmental Benefits .................................................................. 60 3.3.5 Methodology for Evaluating Production Resource Modifications ............................................................. 61 3.3.6 Long-Term Initiatives ................................................................................................................................. 65 3.3.7 Signposts for Managing Production Capacity ............................................................................................ 74 3.4 BILL IMPACT ANALYSIS ............................................................................................................................................. 76 3.5 ENVIRONMENTAL SUSTAINABILITY INITIATIVES .............................................................................................................. 78 4.0 MANAGING THE CUSTOMER BASE AND PROVIDING ADDITIONAL CUSTOMER VALUE ................................... 80 4.1 OVERVIEW OF THE CUSTOMER STRATEGY .................................................................................................................... 80 4.2 MANAGING THE CUSTOMER BASE ............................................................................................................................. 80 4.3 CHANGES TO THE TARIFF STRUCTURE ......................................................................................................................... 81 4.4 FORMING DEEPER CUSTOMER RELATIONSHIPS ............................................................................................................. 87 4.5 DEMAND SIDE MANAGEMENT .................................................................................................................................. 87 4.6 NEW REVENUE MODELS EXPLORING MANAGEMENT OF CUSTOMER CHP.......................................................................... 92 4.7 PROVIDING ADDITIONAL CUSTOMER VALUE ................................................................................................................. 93 2 4.8 NUMBER 6 OIL AND NUMBER 4 OIL CONVERSIONS TO STEAM ........................................................................................ 96 5.0 OPERATIONAL AND ENVIRONMENTAL CONSIDERATIONS OF STEAM PRODUCTION .................................... 102 5.1 OVERVIEW .......................................................................................................................................................... 102 5.2 OPERATIONAL IMPROVEMENTS AND O&M EFFICIENCY ............................................................................................... 102 5.2.1 Workforce Management .......................................................................................................................... 102 5.2.2 Productivity Improvements ...................................................................................................................... 103 5.2.3 Cost Management and Control ................................................................................................................ 104 5.2.4 Maintenance Processes ............................................................................................................................ 104 5.2.5 System Dispatch and Loading .................................................................................................................. 106 5.2.6 Optimizing Plant Fuel Efficiency ............................................................................................................... 106 5.3 ASSET MANAGEMENT AND CAPITAL EFFICIENCY ......................................................................................................... 107 5.4 ENVIRONMENTAL COMPLIANCE MANAGEMENT.......................................................................................................... 108 5.4.1 Environmental Air Regulations ............................................................................................................ 108 6.0 OPERATIONAL MANAGEMENT OF THE DISTRIBUTION SYSTEM .................................................................... 115 6.1 DISTRIBUTION STRATEGY ....................................................................................................................................... 115 6.2 MANAGEMENT OF THE CURRENT ASSET BASE ............................................................................................................ 115 6.2.1 Asset Management and Replacement ..................................................................................................... 115 6.2.2 Managing Company Assets Inside Customer Buildings............................................................................ 118 6.2.3 Asset Management Challenges ................................................................................................................ 119 6.3 PLANNED SYSTEM IMPROVEMENTS .......................................................................................................................... 120 6.3.1 Remote Monitoring To Enhance Safety ................................................................................................... 120 6.3.2 Thermal Efficiency Improvement Program to Reduce Line Losses ........................................................... 121 6.3.3 Various Enhancement Reinforcement Program ....................................................................................... 123 6.3.4 Improve Transport Flexibility ..................................................................................................................
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